Balance Sheet Preparation: Rojko Interiors, Inc. is a leading manufacturer and retailer of home furnishings. The following is adapted from Rojkos June 30, Year 8, annual financial report. Dollars are in thousand. Balances are shown in no particular order.

* Accounts payable: $30,000 * Retained Earnings: $60,000

* Accounts receivable: $30,000 * Inventories: $20,000

* Accrued rent payable: $6,000 * Long-term note payable: $15,000

* Cash: $50,000 * Other long-term liabilities: $5,000

* Contributed capital: $70,000 * Property and equipment: $100,000

* Income taxes payable: $14,000

Prepare a classified balance sheet in good form as of June 30, Year 8 and determine the following balances:

Q13. Current Assets:

	A.	95,000
	B.	100,000
	C.	125,000
	D.	155,000

Q14. Total Assets:

		a195,000
b		200,000
		c230,000
		d290,000

Q15. Current Liabilities:

	A.	30,000
	B.	44,000
	C.	50,000
	D.	110,000

Q16. Total Liabilities:

	A.	20,000
	B.	64,000
	C.	70,000
	D.	130,000

Q17. Owners Equity:

	A.	70,000
	B.	100,000
	C.	130,000
	D.	160,000

Q20. What is the dollar amount of the net income?

	A.	$ (13,000)
	B.	$ 13,000
	C.	$15,000
	D.	$17,000

Amigo Plastics has been in operation for three years. Below find description of activities that occurred during Year 4. You might find it helpful to prepare journal entries for each transaction before you answer questions asked.

Transaction 4: Declared that the company would pay $30,000 in cash dividends to investors next month.

Q31. Indicate the account title to be debited by $30,000.

	A.	Acct Receivable
	B.	Acct Payable
	C.	Cash
	D.	Retained Earnings
	E.	None

Transaction 4: Declared that the company would pay $30,000 in cash dividends to investors next month.

Q32. Indicate the account title to be credited by $30,000.

	A.	Acct Receivable
	B.	Dividend Payable
	C.	Cash
	D.	Note Payable
	E.	None

Transaction 5A - September 1, Y4: Mima purchased 18-months insurance plan (effective 9/1/Y4 through 2/28/Y6) for $3,600 cash.

Q33. Indicate the account title to be debited by $3,600.

	A.	Acct Payable
	B.	Allowance for Insurance
	C.	Cash
	D.	Insurance Expense
	E.	Prepaid Insurance

Transaction 5A - September 1, Y4: Mima purchased 18-months insurance plan (effective 9/1/Y4 through 2/28/Y6) for $3,600 cash.

Q34. Indicate the account title to be credited by $3,600.

	A.	Acct Payable
	B.	Allowance for Insurance
	C.	Cash
	D.	Insurance Expense
	E.	Prepaid Insurance

Transaction 5B - December 31, Y4: prepare adjusting entry for the insurance expired during Y4 (This question is related to Transaction 5A):

Q35. What is the amount of the adjustment?

	A.	$3,600
	B.	$2,400
	C.	$1,200
	D.	$800
	E.	$0

Transaction 5B - December 31, Y4: prepare adjusting entry for the insurance expired during Y4 (This question is related to Transaction 5A):

Q36. Indicate the account title to be debited.

	A.	Allowance for Insurance
	B.	Cash
	C.	Insurance Expense
	D.	Prepaid Insurance
	E.	None

Transaction 5B - December 31, Y4: prepare adjusting entry for the insurance expired during Y4 (This question is related to Transaction 5A):

Q37. Indicate the account title to be credited.

	A.	Allowance for Insurance
	B.	Cash
	C.	Insurance Expense
	D.	Prepaid Insurance
	E.	None

Transaction 6A - October 1, Y4: Mima signed a $100,000, interest-bearing note payable. It was for three years and specified 12 percent annual interest payable at the maturity date of the note.

Q38. Indicate the account title to be debited by $100,000.

	A.	Acct Payable
	B.	Cash
	C.	Long-term Note Payable
	D.	Short-term Note Payable
	E.	None

Transaction 6A - October 1, Y4: Mima signed a $100,000, interest-bearing note payable. It was for three years and specified 12 percent annual interest payable at the maturity date of the note.

Q39. Indicate the account title to be credited.

	A.	Acct Payable
	B.	Cash
	C.	Long-term Note Payable
	D.	Short-term Note Payable
	E.	None

Transaction 6B - December 31, Y4: Record interest expense on the note payable discussed in the above Transaction (Transaction 6A).

Q40. What is the amount of the interest expense?

	A.	$4,000
	B.	$8,000
	C.	$3,000
	D.	$1,333
	E.	$800

Transaction 6B - December 31, Y4: Record interest expense on the note payable discussed in the above Transaction (Transaction 6A).

Q41. Indicate the account title to be debited.

	A.	Acct Payable
	B.	Cash
	C.	Interest Expense
	D.	Interest Payable
	E.	Note Payable

Transaction 6B - December 31, Y4: Record interest expense on the note payable discussed in the above Transaction (Transaction 6A).

Q42. Indicate the account title to be credited.

	A.	Acct Payable
	B.	Cash
	C.	Interest Expense
	D.	Interest Payable
	E.	Note Payable

Which cash flow activity is related to issuing stock to investors? O A. operating activities B. investing activities C. financing activities O D. investing and financing activities QUESTION 4 Which of the following transactions would be considered an investing activity on a Statement of Cash Flows? O A. Purchased equipment for $5,000 cash. O B. Sold stock for $100,000 cash to stockholders. O C. Paid $20,000 income tax. D. Paid $45,000 for inventory for resale. QUESTION 5 Most companies list assets on the balance sheet in order of the size of the dollar amount of each asset. O True False QUESTION 6